|This interview appears in the June 30, 2000 issue of Executive Intelligence Review.
LaRouche: They Are Out
to `Dollarize' Peru and
All of Ibero-America
The following is the full text of the interview which Lyndon LaRouche gave Peru's Gente magazine on June 19, a portion of which was published in their edition of June 21.
Q: Mr. LaRouche, I am César Infanzon; a very
good morning to you. My first question has to do with the OAS [Organization of
American States] high-level mission. We understand it is on its way here and
should be arriving any moment. We understand that there was also a meeting of
that group in the United States either Friday or Saturday, and we would like to
know your thinking in this regard.
LaRouche: Well, I think first of all, there's been
some slight improvement on President Clinton's side. So, the State Department
will probably try to appear at least to behave itself, but [U.S. Secretary of
State Madeleine] Mrs. Albright and her friends will not, nor will [Canadian
Foreign Minister Lloyd] Mr. Axworthy. They will try to do things which will
avoid their having embarrassment with President Clinton, but they are fanatics,
and they will try to do what they can do within those limits.
What they are trying to do is wear down Peru. The object is
to get Peru into NAFTA [the North American Free Trade Agreement]. As a matter of
fact, the intent is to get the entire hemisphere into NAFTA. Now, there's some
support for this idea, of course, from George Bush, his crowd; but the vice
president, Mr. Al Gore, is absolutely hysterical on this issue.
You have to understand that, if you look at the history of
U.S. Wall Street and London banking, with the system coming down--there's
nothing that can save the system in its present form--they will do anything
possible to try to postpone the death of the system another two days. What they
will try to do is create the appearance that they have certain agreements with
Peru, which they can then use as a basis for announcing some new credit
mechanism. They're talking about NAFTA for Peru a few years down the line. But
what they want to get immediately is the dollarization of Peru, or at least
something that approximates dollarization, which they will use to create credit
for themselves in the New York and other markets.
In summation, I would say that, while there is some
moderation being expressed by President Clinton--as you can see by the way he
intervened to affirm his support for the Korea meeting that occurred this past
week--the Wall Street crowd behind Al Gore are absolutely hysterical. This means
that countries such as Canada, the United Kingdom, Australia, New Zealand, and
the United States, will be absolutely hysterical on the financial side, in
trying to push a capitulation of some degree for Peru now.
Q: I wanted to ask you about the meeting that took
place Friday or Saturday, by the OAS, in Washington. What sort of meeting was
it, what did it deal with?
LaRouche: Essentially this. This is the direction
they are moving in. They are moving toward a dollarization and a NAFTA policy,
to integrate the United Kingdom as well as Canada into NAFTA, and to extend
NAFTA throughout the hemisphere.
And the second thing we're picking up, is that they're
pushing very actively with this Project Democracy crowd. So, even though
President Clinton has told them to be a little more moderate with respect to
President Fujimori, nonetheless these fanatics are still fanatics, and will not
be deterred too easily. If you look at the political situation inside the United
States, I have not seen such hysteria in more than 40 years, in the highest
political circles. So, that always has to be taken into account.
One thing should be added. What happened with the Koreas,
which is precisely what I expected would happen when I wrote this article in
EIR on the regional blocs emerging ["Regional Organization under a New
Bretton Woods," EIR, June 16], is the so-called ASEAN-Plus-Three, that
is, the ASEAN [Association of Southeast Asian Nations] members plus China,
Korea, and Japan, are actually moving together. It's not a simple thing, but
they're moving. You're having a similar development in Europe; it's weaker, but
it's significant. The French and Germans are actually moving against what the
United States and London have been trying to do to them. So you have to take
into account, first of all, that there are movements around the world toward
creating a new monetary system, and trying to build up regional blocs, which
makes some people in London and the United States desperate.
At the same time, this financial system is cracking. No one
knows the exact day, as I've said before, but this thing is going down. It's
going down in either a deflationary collapse or a hyperinflationary blow-out
very soon. You might get a sense of that if you look at an article by a friend
of mine, Richard Freeman, which will be published this week ["The World Is Now
Hurtling into Weimar-Style Hyperinflation," EIR, June 23], which follows
up on my report of the nature, the similarity, of the world crisis today and the
hyperinflationary crisis in Germany in the summer of 1923. So, you can assume
that these people in Washington, and especially on Wall Street, are increasingly
Q: What is your opinion of these two gentlemen,
Lloyd Axworthy and César Gaviria, who are members of this
LaRouche: Well, Axworthy represents what we would
call the extended British-American-Canadian combination, which is the City of
London, New York, Australia, New Zealand, Canada, and so forth, and their policy
internationally is to push through dollarization in the hemisphere, and to push
through also complete NAFTA assimilation, and to impose increasingly limited
sovereignty upon states in the region. You might call it
Q: With regard to Project Democracy, what does this
mean in the Peruvian context?
LaRouche: Well, it's an international project which
was actually set up authoritatively in 1982. Relevant legislation was pushed
through in the [U.S.] Congress, after President Reagan had had a visit in London
with Margaret Thatcher. Now, what Project Democracy is--the National Endowment
for Democracy, et al.--is what is called a QUANGO, in diplomatic language. That
is, a quasi-non-governmental organization. It's actually an intelligence
organization, run under a semi-private cover. It gets U.S. government funds for
much of its activities. It is also a branch of the State Department, in effect.
It's sponsored by the State Department; separate from the State Department, but
it really isn't.
And it also contains some of the nastiest of the senior
international intelligence groupings, or organizations, in the world. For
example, Freedom House in New York, which is a part, or offshoot of the
International Rescue Committee operation set up many years ago. It's actually a
creation of the former Communist Jay Lovestone, who set up an international
labor intelligence organization, and Freedom House is essentially a branch of
that. For example, the AFL-CIO international department is filled with people
like this, as are the International Metal Workers Federation headed up in
London. Many of them are senior intelligence operatives, and they deploy as
secret intelligence operations. They are quite nasty, and they don't have much
in the way of morals, but they are very insistent in what they call their
ethics, and what they call democracy.
The essential thing is to destroy the idea of the
nation-state, and to use the slogan of "democracy" by contrasting democracy to
the nation-state, which is idiotic, but that's what they do. So, if they're
going to come and kill you, they're going to do it in the name of democracy.
These people have tried to kill me a few times, so I'm quite familiar with
Q: When you talk about Project Democracy, are you
also including in that Mr. George Soros?
LaRouche: Soros is an asset of a bankers' group, and
he funds a lot of things, and is a politically pro-active supporter and funder
of many projects internationally of this nature.
If you want to understand this, you have to go back to
late-18th-century England, when, in 1782, the modern British Foreign Office was
first set up. The head of the Foreign Office at that time was Jeremy Bentham, a
very notorious character in the history of Latin America. Lord Palmerston was
essentially a protégé of Jeremy Bentham. Look at the fact that the
modern British form of international drug trafficking, such as the China opium
traffic, was set up by Jeremy Bentham. His protégé Lord
Palmerston, of course, became the author of the infamous Opium War policy
against China. This was a complex operation involving financial personalities,
dirty political characters, military operations, everything.
If you want to see exactly how the drug war was run against
the states of Central and South America, go back to the Bentham-Palmerston
policy of the late 18th century and the 19th century, and it had exactly the
same purpose. The objectives are about the same; the methods are about the same.
And George Soros is typical of this kind of financial operator, and persons of
the same type were doing the same kind of thing during the days of the Opium
Wars against China.
Q: What effect will this dollarization, if applied,
have on Peru?
LaRouche: It will absolutely destroy the nation and
its people. You see what's happened to Argentina, which was once a very powerful
economy. What this amounts to is a straight looting of the people and the
country, by means of manipulating a currency the people don't control. It
actually is a method of mass murder, in effect, if you look at what the
inevitable consequences are. And the people behind it are either so greedy that
they don't see that they are committing a crime of that sort, or, if they see
it, they say they have to do it anyway.
Q: This dollarization that you are referring to: Is
this something that Axworthy and Gaviria will be bringing with them as part of
LaRouche: Well, it will be in their bag. How much
they will push it up front, in that form, is not certain. But what will occur is
emphasis in the conversation on the "Ecuador model," and also in emphasis on the
great "peace" in Colombia. They'll make it very clear. Whether they'll say it
outright or not, they intend to dollarize the Peruvian economy.
Q: Who, then, would be the people, specifically, who
would come to work on our country and say, "Look, you must
LaRouche: You have some of them already there. They
are people associated with the Inter-American Dialogue, the Andean Commission of
Jurists, and similar kinds of organizations--Project Democracy offshoots, in
general. There will be pressure from some people in Europe, which we've already
seen, from the people who are "concerned" about the terrorists in
I would say that what you could guarantee is an insidious
continuation of the pressure. They know where they're going, and they're going
to push in that direction. They will adjust tactically, in verbiage and in
motions, the way they think they can get by with it; but their objectives are
Q: Speaking of the Andean Commission of Jurists, one
of its most high-level representatives, Mr. Diego García Sayán,
had some very nasty things to say about you in an interview with Channel N
television, which belongs to the newspaper Comercio. We want to know what
LaRouche: I've heard about him before. This is not
the first time; he's just gotten a little wilder and crazier this time, making
wild exaggerations, false charges, that sort of thing. Such statements as were
on the television in Peru suggest a man who has become rather desperate. Maybe
somebody who backs him is not pleased with his performance right now. I find
these types generally do that. They become totally wild, absolutely silly,
crazy, with these absolutely false accusations. When you hear that kind of thing
from such sources, you know they're losing their nerve.
Q: Besides attacking you, Mr. LaRouche, he's also
attacked us at Gente magazine, and that has led us to bring legal charges
against him. And the same thing with Mr. [Gustavo] Gorriti, when he was
interviewed by Channel N.
LaRouche: Well, obviously they're frightened.
They're not frightened by what we're going to do, but frightened by what their
masters are going to do if they think they're failures.
Q: Mr. LaRouche, allow me to go back to this
question of dollarization. You have mentioned that Mr. Diego García
Sayán is one of those pushing for this. He's a member of Inter-American
Dialogue here in Peru. But who else, both inside and outside Peru, is pushing
LaRouche: It's actually coming from the foreign Wall
Street and London powers. If you see what is happening on Wall Street itself,
you see a financial bubble, a hyperinflationary financial bubble that is about
to explode--if you study Richard Freeman's article, in light of the previous
article that I wrote, comparing the present situation to the 1923 German
Since 1971, the states of the Americas have been looted and
swindled by the floating-exchange-rate system. As a group, the nations of
Central and South America have paid much more debt than they ever incurred. What
they would do, is that when they would devalue the currencies of these
countries--forced devaluation of a currency--they would increase the amount of
the debt assigned to the country, in order to protect the foreign creditors. So,
they've turned the currencies of the hemisphere into trash.
The move toward dollarization has the same kind of purpose.
The difference is that, today, dollarization--if applied--would lead very
quickly, in a matter of months, to hyperinflationary explosions and death of the
currencies, including the dollar. Any country that is forced to accept a
currency board under dollarization, is a country which is financially,
economically, and socially doomed. These currencies are worthless.
For example, look at the figures on the United States. The
current account deficit of the United States is over $450-500 billion a year.
That means the United States is not paying for what it consumes. In addition,
there is a vast amount--probably at a rate of $2-3 trillion a year--of financial
funds flowing in from Japan and from other parts of Asia, and from Europe. So,
20-30% of the U.S. dollar is bankrupt. Look at the rate of increase of the
current account deficit, and see the increase in the inflows of financial funds
from Japan and Europe into the U.S. market. And then look at warning signs that
we already have a hyperinflation in some commodities already occurring, as in
the case of petroleum prices.
Dollarization is just another way of trying to print
fictitious currency, which they can put in the banks of the bankers, so the
bankers can pretend not to be bankrupt for one more day. Otherwise, you can
compare it to a John Law bubble from the 18th century, or the Tulip Bubble from
the 17th century. It's the same principle as is involved in
One of the problems, of course, is that many of the younger
people who are now in top positions in finance and U.S. government, simply
because they have not been educated, have no understanding of the ABCs of
economics. They not only cannot see, but they refuse to see, what fools they
are. It's like Hitler in the bunker: They keep fighting on, because they cannot
quit. That's why they're dangerous.
Q: Thank you very much, Mr. LaRouche. Any final
LaRouche: Well, I'm just hoping for the best. I
think that there are some good signs. I wouldn't want to exaggerate the
significance of them, but consider the fact of the Chiang Mai meeting in
Thailand, where the group of the ASEAN nations, plus China, both Koreas, and
Japan, met to boost the launching of the Asian Monetary Fund, which [Japanese]
ex-Deputy Finance Minister [Eisuke] Sakakibara had launched in 1997 over the
objection of [U.S. Treasury Secretary] Larry Summers.
What I have from the inside of the past days' reports in
those parts of the world, is that Japan and China are going into a new kind of
partnership in that region, which means that there's going to be a sudden change
in Japan in the direction of going back to an industrial economy, rather than a
Plaza Accords economy. The fact is that Japan cannot survive, except by
exporting high technology to countries such as those in South and Southeast
What I've seen in the recent period is more and more clarity
on this idea among many and increasing numbers of leaders in Japan and in the
ASEAN countries, and in China. These kinds of developments are positive, and
make me cautiously optimistic. I would hope that Peru would benefit from